Deutsche Bank Securities' Neil Abromavage Initiates Coverage of Eight Consumer Finance Sector Stocks.Business Editors NEW YORK--(BUSINESS WIRE)--Nov. 17, 2003 Deutsche Bank Securities Inc. analyst Neil Abromavage today launched coverage of the following eight companies within the credit card and mortgage finance sectors: American Express (NYSE NYSE See: New York Stock Exchange : AXP The brand name Digital gave to its first family of Alpha-based computers. In 1998, Digital was acquired by Compaq. See Alpha. ), Capital One (NYSE: COF), Countrywide Financial (NYSE: CFC CFC See: Controlled foreign corporation ), Golden West Financial (NYSE: GDW GDW Game Designers' Workshop (wargame and roleplaying game company) GDW Ginga Densetsu Weed (manga/anime) GDW Genau Dann Wenn (German: If and Only If) GDW globally distributed work ), MBNA MBNA Monument Builders of North America MBNA Mercedes-Benz North America MBNA Maryland Bank, National Association MBNA Maryland Bank North America MBNA Mount Baker Nurses Association (Bellingham, Washington) Corporation (NYSE: KRB KRB Krebs Ringer Bicarbonate ), Providian Financial Corporation (NYSE: PVN), SallieMae (NYSE: SLM), and Washington Mutual Inc. (NYSE: WM). According to the consumer finance analyst, credit card stocks have rallied from their March lows - outperforming the broader equity market as regulatory pressures cooled and credit quality improved. "Despite this strong advance year-to-date, we believe there is still potential selective upside in this sector," said Abromavage. "We see a window of opportunity in the near-term within this sector while credit quality continues to improve, short-term interest rates Short-term interest rates Interest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year. Often called money market rates. are on hold and asset growth is set to accelerate - as refinance activity transitions to revolving credit card growth." Abromavage also expects mortgage market volumes in 2004 will significantly decelerate from 2003 levels as refinance activity slows and interest rates appear more likely to rise over the next year. "Over the last two years, mortgage related stocks have significantly outperformed the broader equity market and we believe current valuations reflect much of the solid fundamental performance delivered during that time period," said Abromavage. "Looking forward, we are thinking more cautiously about interest rate risk and the ripple-effect of potential political and regulatory issues for the housing-related U.S. government-sponsored enterprises in 2004." About Deutsche Bank With roughly EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 864 billion in assets and approximately 68,500 employees, Deutsche Bank (NYSE: DB) offers its 13 million clients unparalleled financial services in 76 countries throughout the world. Deutsche Bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people. Deutsche Bank ranks among the global leaders in corporate banking and securities, transaction banking, asset management, and private wealth management, and has a significant private & business banking franchise in Germany and other selected countries in Continental Europe. Deutsche Bank Securities Inc. is the investment banking and securities arm of Deutsche Bank AG in the United States. www.deutsche-bank.com |
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